The exchange traded notes track VIX futures, rather than the spot price. [What’s Next for Stock, VIX ETFs?]
“The VIX, Wall Street’s fear gauge, is up double digits today as it tests the lower end of its three month range. Investor complacency into the end of last week caused a failed break down though the range,” said Tarquin Coe, technical analyst at Investors Intelligence.
“There may be some backing and filling over the next few days but overall the chart looks to be setting itself up for a rally back towards the top of the range. Such a move would of course reflect equity weakness,” the analyst wrote in a newsletter Monday.
